Monday, April 11, 2016

The new 52-week high / low rule:

In
my last post – I observed that most of the technical analysts I know have their
own style or skill sets they apply to the study of the capital markets. Technical
analysis is an art form and differs from the fundamental analysis of profit and
loss statements and balance sheets which is a mathematical study of past
history

The
technical analyst will also scan the new 52-week high / low list because we
know the 52-weekk high / low rule – the first new 52-week high will not be the
last and, the first new 52-week low will be the last.

At
the close on the TSX April 11, 2016 there were about 32 new 52-week highs (I ignore
non common issuers) and of the total population 28 were commodity related.
Names like Asanko Gold Inc, Yamana Gold Inc, Kinross Gold Corporation, Barrick
Gold Corporation, First Majestic Silver Corp, NovaGold Resources Inc., Detour
Gold Corporation and Agnico Eagle Mines Limited were listed.

Most of these names are components of the TSX listed
iShares Materials ETF (XMA) and so to avoid stock picking why not just own the
XMA?

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About Me

Bill has been writing a weekly business column in the Toronto Star since 1997, and was an early contributor to the former “Report on Business Television”. He has founded the Getting Technical Market Newsletter in December 1998.
Bill is also an Instructor for the Canadian Securities Institute. He is also a contributing author of the textbook for the technical analysis course offered by the Canadian Securities Institute (CSI. He is also called upon to provide training to industry professionals on technical analysis at many of Canada’s leading brokerage firms.
In February 2010 Bill became a technical sub-advisor to Stonebrooke Asset Management Ltd. who manages the Hybrid Investment Program under the Elite Wealth Strategies program for Union Securities Ltd..
The relationship ended in Feb 2012 but over the 24 month period the Hybrid Program enjoyed five technical selections that were the subject of takeover bids namely, Gerdau Ameristeel, El Paso Corp, Biovail Corp. Viterra Inc. and ShawCor Ltd